INTL FCStone Inc. (Nasdaq:INTL) today announced that INTL Global Currencies Limited, its wholly-owned subsidiary in the United Kingdom, has completed its acquisition of Ambrian Commodities Limited (ACL), the London Metals Exchange (LME) brokerage subsidiary of Ambrian Capital Plc. The London-based ACL, currently a non-clearing LME member, specializes in the development and execution of risk-management programs designed to hedge price fluctuations in base metals for a wide variety of producers, manufacturers and fabricators.
The acquisition was conditional upon the approval by the UK Financial Services Authority of the proposed change of control of ACL. This was received on 5th August 2011 and effective 1st September the company will be renamed and shall conduct business as INTL FCStone (Europe) Ltd. The FSA has also approved the Variation of Permissions application, permitting expansion of the group's activities in London beyond those on the LME.
INTL FCStone (Europe) Ltd intends to secure LME Category Two membership within the next four weeks. LME Category Two members, or Associate Broker Clearing Members, have all the privileges of Category One or ring-dealing members except they may not trade in the open-outcry sessions.
"The conclusion of the ACL acquisition will enhance INTL FCStone's commodities execution capabilities in the key LME market and strengthen our growing presence in London," commented Scott Branch, COO of INTL FCStone, Inc.
Philip Smith, Managing Director of INTL Global Currencies, commented, "We have received approval from the FSA to not only complete the acquisition of ACL but also for our Variation of Permissions which will allow us to utilise this new business as a platform to push out our clearing capabilities and continue to roll out more INTL FCStone products globally."
